Multiple Agency Fiscal Note Summary — 1389 HB: Peer-to-peer vehicle sharing
Summary
This is the multiple agency fiscal note summary for bill number 1389 HB, titled "Peer-to-peer vehicle sharing," published final on 2/12/2021. The summary shows estimated operating expenditures of $42,882 for the Office of Insurance Commissioner in 2021-23 and $5,558 in each of 2023-25 and 2025-27, and none for the Department of Licensing. The Office of Insurance Commissioner assumes the sharing program must buy liability coverage and that insurers will file about 10 additional rate and policy form filings, with nearly all personal automobile insurers filing updates. It cites 213 personal automobile insurers in the 2018 market. The Department of Licensing note checks no fiscal impact and describes the bill's definitions, insurance minimums and program agreement requirements.
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“Multiple Agency Fiscal Note Summary — 1389 HB: Peer-to-peer vehicle sharing.”
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Multiple Agency Fiscal Note Summary
Bill Number: 1389 HB Title: Peer-to-peer vehicle sharing
Estimated Cash Receipts
NONE
Estimated Operating Expenditures
Agency Name 2021-23 2023-25 2025-27
FTEs GF-State NGF-Outlook Total FTEs GF-State NGF-Outlook Total FTEs GF-State NGF-Outlook Total
Office of Insurance .2 0 0 42,882 .0 0 0 5,558 .0 0 0 5,558
Commissioner
Department of .0 0 0 0 .0 0 0 0 .0 0 0 0
Licensing
Total $ 0.2 0 0 42,882 0.0 0 0 5,558 0.0 0 0 5,558
Estimated Capital Budget Expenditures
Agency Name 2021-23 2023-25 2025-27
FTEs Bonds Total FTEs Bonds Total FTEs Bonds Total
Office of Insurance .0 0 0 .0 0 0 .0 0 0
Commissioner
Department of Licensing .0 0 0 .0 0 0 .0 0 0
Total $ 0.0 0 0 0.0 0 0 0.0 0 0
Estimated Capital Budget Breakout
NONE
Prepared by: Kyle Siefering, OFM Phone: Date Published:
(360) 995-3825 Final 2/12/2021
FNPID: 62080
FNS029 Multi Agency rollup
Individual State Agency Fiscal Note
Bill Number: 1389 HB Title: Peer-to-peer vehicle sharing Agency: 160-Office of Insurance
Commissioner
Part I: Estimates
No Fiscal Impact
Estimated Cash Receipts to:
NONE
Estimated Operating Expenditures from:
FY 2022 FY 2023 2021-23 2023-25 2025-27
FTE Staff Years 0.2 0.2 0.2 0.0 0.0
Account
Insurance Commissioners Regulatory 21,441 21,441 42,882 5,558 5,558
Account-State 138-1
Total $ 21,441 21,441 42,882 5,558 5,558
Estimated Capital Budget Impact:
NONE
The cash receipts and expenditure estimates on this page represent the most likely fiscal impact. Factors impacting the precision of these estimates,
and alternate ranges (if appropriate), are explained in Part II.
Check applicable boxes and follow corresponding instructions:
If fiscal impact is greater than $50,000 per fiscal year in the current biennium or in subsequent biennia, complete entire fiscal note
form Parts I-V.
X If fiscal impact is less than $50,000 per fiscal year in the current biennium or in subsequent biennia, complete this page only (Part I).
Capital budget impact, complete Part IV.
Requires new rule making, complete Part V.
Legislative Contact: Phone: Date: 02/04/2021
Agency Preparation: David Forte Phone: 360-725-7042 Date: 02/08/2021
Agency Approval: Bryon Welch Phone: 360-725-7037 Date: 02/08/2021
OFM Review: Jason Brown Phone: (360) 742-7277 Date: 02/08/2021
Form FN (Rev 1/00) 164,708.00 Request # 21-45-1
FNS063 Individual State Agency Fiscal Note 1 Bill # 1389 HB
Part II: Narrative Explanation
II. A - Brief Description Of What The Measure Does That Has Fiscal Impact
Briefly describe by section number, the significant provisions of the bill, and any related workload or policy assumptions, that have revenue or
expenditure impact on the responding agency.
Section 3(1)(a) requires, in the event of a loss or injury that occurs during the sharing period defined in section
2(2), the program is to assume the liability of an owner for any loss or injury during the car sharing period in an
amount stated in an agreement defined in section 2(3).
Section 3(1)(d) requires the program to ensure that during the car sharing period the shared owner and shared
driver have insurance coverage under a motor vehicle liability policy.
Section 3(3) permits an authorized insurer that writes motor vehicle liability insurance to add exclusions to
policies issued to the registered owner of a peer-to-peer vehicle made available for sharing facilitated by a
peer-to-peer vehicle sharing program.
II. B - Cash receipts Impact
Briefly describe and quantify the cash receipts impact of the legislation on the responding agency, identifying the cash receipts provisions by section
number and when appropriate the detail of the revenue sources. Briefly describe the factual basis of the assumptions and the method by which the
cash receipts impact is derived. Explain how workload assumptions translate into estimates. Distinguish between one time and ongoing functions.
II. C - Expenditures
Briefly describe the agency expenditures necessary to implement this legislation (or savings resulting from this legislation), identifying by section
number the provisions of the legislation that result in the expenditures (or savings). Briefly describe the factual basis of the assumptions and the
method by which the expenditure impact is derived. Explain how workload assumptions translate into cost estimates. Distinguish between one time
and ongoing functions.
Section 3(1) requires, in the event of a loss or injury that occurs during the sharing period defined in section 2(2),
the program is to assume the liability of an owner for any loss or injury during the sharing period in an amount
stated in an agreement defined in section 2(3). Section 3(1)(d) requires the program to ensure that during the
sharing period the shared owner and shared driver have insurance coverage under a motor vehicle liability policy.
The Office of the Insurance Commissioner (OIC) assumes the peer-to-peer program will be required to purchase
liability coverage. The coverage is assumed to be a new commercial auto insurance product requiring insurers to
file rate and policy form filings for the product with the OIC. OIC assumes 10 additional rate and policy form
filings on an ongoing basis starting in FY2022. For FY2022 and FY2023 these would require more in-depth
review of four hours per filing, followed by a reduction to two hours per filing beginning in FY2024 to review
filing updates requiring 40 hours of an Actuarial Analyst 3 and 40 hours of a Functional Program Analyst 3
(FPA3) for FY2022 and FY2023. For FY2024 onward, 20 hours of an Actuarial Analyst 3 and 20 hours of a
FPA3 will be required.
Section 3(3) permits an authorized insurer that writes motor vehicle liability insurance to add exclusions to
policies issued to the registered owner of a peer-to-peer vehicle made available for sharing facilitated by a
peer-to-peer vehicle sharing program. The OIC will need to review these policy form filings and assumes nearly
all personal automobile insurers will file an update. There were 213 personal automobile insurers in the 2018
market. OIC assumes 100 companies will file an update in FY2022 and another 100 companies will file an
update in FY2023 requiring two hours to review each filing. OIC assumes a one-time expense of 200 hours of a
FPA3 in both FY2022 and FY2023.
Ongoing costs:
Salary, benefits and associated costs for .01 FTE Actuarial Analyst 3 and .01 FTE Functional Program Analyst 3
beginning in FY2022.
Peer-to-peer vehicle sharing 160-Office of Insurance Commissioner
Form FN (Rev 1/00) 164,708.00 Request # 21-45-1
FNS063 Individual State Agency Fiscal Note 2 Bill # 1389 HB
Part III: Expenditure Detail
III. A - Operating Budget Expenditures
Account Account Title Type FY 2022 FY 2023 2021-23 2023-25 2025-27
138-1 Insurance State 21,441 21,441 42,882 5,558 5,558
Commissioners
Regulatory Account
Total $ 21,441 21,441 42,882 5,558 5,558
III. B - Expenditures by Object Or Purpose
FY 2022 FY 2023 2021-23 2023-25 2025-27
FTE Staff Years 0.2 0.2 0.2 0.0 0.0
A-Salaries and Wages 12,506 12,506 25,012 3,282 3,282
B-Employee Benefits 4,647 4,647 9,294 1,164 1,164
C-Professional Service Contracts
E-Goods and Other Services 4,288 4,288 8,576 1,112 1,112
G-Travel
J-Capital Outlays
M-Inter Agency/Fund Transfers
N-Grants, Benefits & Client Services
P-Debt Service
S-Interagency Reimbursements
T-Intra-Agency Reimbursements
9-
Total $ 21,441 21,441 42,882 5,558 5,558
III. C - Operating FTE Detail: List FTEs by classification and corresponding annual compensation. Totals need to agree with total FTEs in
Part I and Part IIIA
Job Classification Salary FY 2022 FY 2023 2021-23 2023-25 2025-27
Actuarial Analyst 3 93,132 0.0 0.0 0.0 0.0 0.0
Functional Program Analyst 3 70,956 0.2 0.2 0.2 0.0 0.0
Total FTEs 0.2 0.2 0.2 0.0 0.0
III. D - Expenditures By Program (optional)
NONE
Part IV: Capital Budget Impact
IV. A - Capital Budget Expenditures
NONE
IV. B - Expenditures by Object Or Purpose
NONE
IV. C - Capital Budget Breakout
Identify acquisition and construction costs not reflected elsewhere on the fiscal note and describe potential financing methods
NONE
IV. D - Capital FTE Detail: List FTEs by classification and corresponding annual compensation. Totals need to agree with total FTEs in
Part IVB
NONE
Peer-to-peer vehicle sharing 160-Office of Insurance Commissioner
Form FN (Rev 1/00) 164,708.00 Request # 21-45-1
FNS063 Individual State Agency Fiscal Note 3 Bill # 1389 HB
Part V: New Rule Making Required
Peer-to-peer vehicle sharing 160-Office of Insurance Commissioner
Form FN (Rev 1/00) 164,708.00 Request # 21-45-1
FNS063 Individual State Agency Fiscal Note 4 Bill # 1389 HB
Individual State Agency Fiscal Note
Bill Number: 1389 HB Title: Peer-to-peer vehicle sharing Agency: 240-Department of
Licensing
Part I: Estimates
X No Fiscal Impact
Estimated Cash Receipts to:
NONE
Estimated Operating Expenditures from:
NONE
Estimated Capital Budget Impact:
NONE
The cash receipts and expenditure estimates on this page represent the most likely fiscal impact. Factors impacting the precision of these estimates,
and alternate ranges (if appropriate), are explained in Part II.
Check applicable boxes and follow corresponding instructions:
If fiscal impact is greater than $50,000 per fiscal year in the current biennium or in subsequent biennia, complete entire fiscal note
form Parts I-V.
If fiscal impact is less than $50,000 per fiscal year in the current biennium or in subsequent biennia, complete this page only (Part I).
Capital budget impact, complete Part IV.
Requires new rule making, complete Part V.
Legislative Contact: Phone: Date: 02/04/2021
Agency Preparation: Merdan Bazarov Phone: 360-902-3795 Date: 02/12/2021
Agency Approval: Kristin Bettridge Phone: 360-902-3644 Date: 02/12/2021
OFM Review: Kyle Siefering Phone: (360) 995-3825 Date: 02/12/2021
Form FN (Rev 1/00) 164,727.00 Request # 1389 HB-1
FNS063 Individual State Agency Fiscal Note 1 Bill # 1389 HB
Part II: Narrative Explanation
II. A - Brief Description Of What The Measure Does That Has Fiscal Impact
Briefly describe by section number, the significant provisions of the bill, and any related workload or policy assumptions, that have revenue or
expenditure impact on the responding agency.
This bill establishes regulations for peer-to-peer vehicle sharing programs, including creating definitions and
establishing minimum insurance requirements for participants of a program.
Section 1 states that this act is known as the peer-to-peer vehicle sharing program act.
Section 2 creates definitions including “peer-to-peer car sharing”, “peer-to-peer car sharing program” and
“shared vehicle owner”:
Section 2(10) "Shared vehicle owner" means the registered owner, or a person or entity designated by the
registered owner, of a vehicle made available for sharing to shared vehicle drivers through a peer-to-peer car
sharing program. "Shared vehicle owner" does not mean rental car business as defined in RCW 46.04.466.
"Shared vehicle owner" does not mean rental car company as defined in RCW 48.115.005.
Section 3 creates a new section to establish minimum insurance requirements for the car sharing programs, as
well as the shared vehicle owner.
Section 4 creates a new section to establish the requirements for each car sharing program agreement, which
must be shared with the shared vehicle owner and the shared vehicle driver. These agreements must include:
Section 4(a) any right to seek indemnification by the program, if the shared vehicle owner or driver breached
their terms and conditions.
Section 4(b) the vehicle liability insurance policy
Section 4(c) proof that the insurance coverage is in effect at the time of vehicle is in use for the program.
Section 4(d) the daily rates and fees, and any additional charges.
Section 4(e) a statement that the shared vehicle owner's motor vehicle liability insurance may not provide
coverage for a shared vehicle.
Section 4(f) emergency telephone numbers.
Section 4(g) if there are conditions under which a shared vehicle driver must maintain a personal automobile
insurance policy with certain coverage limits on a primary basis in order to book a shared motor vehicle.
Section 4(2)(a) a peer-to-peer program may not enter into a car sharing agreement with a driver, unless they hold
a current, valid driver license in the state or is a non-resident that holds a license in a different state.
Section 4(2)(b) a peer-to-peer the program must keep a record of: the name and address of the shared vehicle
driver, their driver license number, and the place of issuance of that license.
Section 5 repeals the following statutes:
Peer-to-peer vehicle sharing 240-Department of Licensing
Form FN (Rev 1/00) 164,727.00 Request # 1389 HB-1
FNS063 Individual State Agency Fiscal Note 2 Bill # 1389 HB
Section 5(1) RCW 48.175.005 (Definitions)
Section 5(2) RCW 48.175.010 (Requirements of program)
Section 5(3) RCW 48.175.020 (Program's liabilities—Owner's insurance policy)
Section 5(4) RCW 48.175.030 (Private passenger motor vehicle not a commercial)
Section 5(5) RCW 48.175.900 (Application)
Section 6 sections 1 through 4 of this act constitute a new chapter in Title 46 RCW.
Section 7 establishes the effective date of this act of January 1, 2022.
Overall, this legislation does not impose any new authority to the Department to monitor or regulate these
peer-to-peer vehicle sharing programs, drivers or participants. It is assumed that these vehicles would follow the
same registration and titling requirements as other vehicle owners, however would be required to maintain
different insurance minimums which would be verified by the vehicle sharing programs, not the Department.
Additionally, any dispute resolution would be handled by the vehicle sharing programs. Therefore, no fiscal
impact.
II. B - Cash receipts Impact
Briefly describe and quantify the cash receipts impact of the legislation on the responding agency, identifying the cash receipts provisions by section
number and when appropriate the detail of the revenue sources. Briefly describe the factual basis of the assumptions and the method by which the
cash receipts impact is derived. Explain how workload assumptions translate into estimates. Distinguish between one time and ongoing functions.
II. C - Expenditures
Briefly describe the agency expenditures necessary to implement this legislation (or savings resulting from this legislation), identifying by section
number the provisions of the legislation that result in the expenditures (or savings). Briefly describe the factual basis of the assumptions and the
method by which the expenditure impact is derived. Explain how workload assumptions translate into cost estimates. Distinguish between one time
and ongoing functions.
Part III: Expenditure Detail
III. A - Operating Budget Expenditures
NONE
III. B - Expenditures by Object Or Purpose
NONE
III. C - Operating FTE Detail: List FTEs by classification and corresponding annual compensation. Totals need to agree with total FTEs in
Part I and Part IIIA
NONE
III. D - Expenditures By Program (optional)
NONE
Part IV: Capital Budget Impact
IV. A - Capital Budget Expenditures
Peer-to-peer vehicle sharing 240-Department of Licensing
Form FN (Rev 1/00) 164,727.00 Request # 1389 HB-1
FNS063 Individual State Agency Fiscal Note 3 Bill # 1389 HB
NONE
IV. B - Expenditures by Object Or Purpose
NONE
IV. C - Capital Budget Breakout
Identify acquisition and construction costs not reflected elsewhere on the fiscal note and describe potential financing methods
NONE
IV. D - Capital FTE Detail: List FTEs by classification and corresponding annual compensation. Totals need to agree with total FTEs in
Part IVB
NONE
Part V: New Rule Making Required
Peer-to-peer vehicle sharing 240-Department of Licensing
Form FN (Rev 1/00) 164,727.00 Request # 1389 HB-1
FNS063 Individual State Agency Fiscal Note 4 Bill # 1389 HB
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